HHC reports theft of personal health info

The New York City Health and Hospitals Corporation (HHC) has begun to notify nearly 1.7 million patients and hospital staff, as well as the employees of vendors, contractors, and others about a recent reported theft of electronic files that contained their personal or protected health information (PHI). All notified parties were served by and/or provided services for or at Jacobi Medical Center, North Central Bronx Hospital and their two affiliated health centers during the past 20 years.

HHC executives issued a statement regarding the notification on Feb. 11.

The data in the stolen files is not readily accessible without highly specialized technical expertise and data-mining tools, and there is no evidence to indicate that the information has been accessed and misused, the executives said.

[See also: Kroll names top 10 data security issues for 2011.]

“Nonetheless, HHC has taken decisive steps to protect the individuals who are potentially affected,” they said.

Big Data and Healthcare Analytics Forum June 4-5 Washington

HHC is offering free credit monitoring and fraud resolution services for one year and has opened a toll-free phone information hotline at 877-412-7148. Those affected may also call 311 for information. Special customer care centers will open at both hospitals today.

 

“We value and protect privacy and confidentiality and deeply regret any inconvenience and concern this may create for our patients, staff and others affected," said HHC President Alan D. Aviles. "The loss of this data occurred through the negligence of a contracted firm that specializes in the secure transport and storage of sensitive data, but HHC is taking responsibility for providing information and credit monitoring services to any affected individual who may be worried about the possibility of identity theft.”

 

The files were reported stolen on Dec. 23, from a vehicle operated by GRM Information Management Services. The theft occurred while the GRM van was left unattended and unlocked while the driver made other pickups. GRM reported the incident to the police and dismissed the driver of the vehicle. To date, the files have not been recovered.

[See also: Mass. hospital investigating the potential loss of back-up data for 800,000 individuals .]

HHC has taken immediate measures to prevent a similar situation from reoccurring. It has terminated the contract with the vendor responsible for the loss, and has filed a lawsuit against the vendor to hold it responsible for covering all of the costs associated with notifying all affected individuals, and to pay for other damages related to the loss of the data.

 

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pjcasey75 say: HIPAA annual maximum fine is $1.5M

If I read HIPAA penalties correctly, HHC may stand to pay a minimum $100 per violation for the breach. Is that per record? Well, that would be a minimum of $80M in fines. Lucky for them, there's a $1.5M ANNUAL cap.

Now, if they've hit their annual cap, do you think medical records at HHC are MORE secure? It's only February, after all.

Imagine what the value of 800,000 valid social security numbers linked with credit cards and health insurance policies would be in a cybercrime hot spot like say, Romania? I'd venture it's a whole lot more than $1.5M. Given those economics, and barring any actual jail time, the numbers suggest a hospital could make more money outright selling their own records than it would ever risk in penalties, even if they get caught every time.

Let's go one further. Would the federal government, which just bailed out Wall Street and our domestic auto industry actually penalize a major metro hospital into bankruptcy? Or are they "too big" or "too critical" to fail? How would that look during an election year?

Formulas like that are a dangerous thing because, yes Virginia, there are bad people in the world.

HIPAA does almost nothing to secure electronic medical records. Laws against security breaches do not equal security against illegal breaches. I honestly don't know how to improve security measures, but I know we're in such a rush to computerize records, we haven't paid adequate attention to our security risks.

Prediction: Even excluding malice and forethought as contributors, we will see another headline like this within the next 30 days.